GUJARAT TEA PROCESSORS & PACKERS LIMITED ACCOUNTS FOR THE YEAR ENDED 31/03/2010NOTICE NOTICE IS HEREBY given that the 30th Annual General Meeting of the Members of GUJARAT TEA PROCESSORS & PACKERS LIMITED will be held at JMC House, 6” Floor, (Opp. Parimal Garden, Ambawadi, Ahmedabad - 380 006, al 5:00 p.m., on Wednesday, the 21" day of July, 2010 to transact the following business : - ORDINARY BUSINESS 1, To receive, consider and adopt the Balance Sheet as at 31st March, 2010 and the Profit and Loss Account for the year ended on that date and the Reports of the Board of Directors and Auditors thereon, 2. To confirm the payment 10, terim dividend of Rs. 4.00 per equity share for the year 2009- 3. To declare final dividend on equity shares for the year 2009-10. 4. To appoint a Director in place of Shri Parasbhai P. Desai, who retires by rotation and being eligible offers himself for re-appointment. 5. To appoint @ Director in place of Smt. Pannaben P. Desai, who retires by rotation and being eligible offers herself for re-appointment. 6. To appoint @ Director in place of Smt, Maitriben D. Zaveri, who retires by rotation and being eligible offers herself for re-appointment. 7. To appoint Auditors M/s. CC. Chokshi & Co., Chartered Accountants, Ahmedabad, to hold office from the conclusion of this Annual General Meeting till the conclusion of the next Annual General Meeting and to fix their remuneration, ‘SPECIAL BUSINESS :- 8. MODIFICATION IN ARTICLE! SSOCIATI HI - To consider and, if thought fit, to pass with or without modification(s), the following resolution as a SPECIAL RESOLUTION = “RESOLVED THAT pursuant to the provisions of Section 31 and other applicable provisions, if any, of the Companies Act, 1956, the Articles of Association of the Company, be and are hereby altered by addition of following proviso after the end of Article No. 24 of the Articles of Association of the Company .-“Appointment of Managing Director, Whole-time Director, Executive Director, Special Director like Technical Director, Financial Director etc, shall be subject to determination ipso facto if he ceases to be a Director due to any cause. However, in case the non-retiing Managing Director, Whole-time Director, Executive Director, Special Director like Technical Director, Financial Director ete. is to be reckoned or subjected to the retirement by rotation who will retire at any Annual General Meeting, such Managing Director, Whole-time Director, Executive Director, ‘Special Director like Technical Director, Financial Director etc. reappointed as a Director immediately on retirement by rotation, shall continue to hold his office of Managing Director, Whole-time Director, Executive Director, Special Director like Technical Director, Financial Director ete., as the case may be and such reappointment as a Director in the same Annual General Meeting shall not be deemed to constitute a break in his appointment as Managing Director, Whole-time Director, Executive Director, Special Director like Technical Director, Financial Director etc. Moreover, in case of Managing Director, Whole-time Director, Executive Director, Special Director like Technical Director, Financial Director ete. who is liable to retire by rotation at any Annual General Meeting as per the terms of his appointment and in the event of his reappointment as a Director in the same Annual General Meeting shalt also not be deemed to constitute @ break in his appointment as Managing Director, Whole-time Director, Executive Director, Special Director like Technical Director, Financial Director, etc." “RESOLVED FURTHER THAT Shri Paras P. Desai, and / or Shri Parag R. Desai, Executive Director of the Company, be and is hereby severally authorized to file necessary forms with the Office of the Registrar of Companies, Gujarat and further empowered to do all such acts, deeds. and things as may be required or deemed expedient to implement this Resolution’. REGD. OFFICE = WAGH BAKRI HOUSE, OPP. PARIMAL GARDEN, AMBAWADI, AHMEDABAD-380 006 BY ORDER OF THE BOARD OF DIRECTORS FOR GUJARAT TEA PROCESSORS & PACKERS LTD. iC Date : 11" June, 2010 P.O. DESAI Place : Ahmedabad CHAIRMAN & MANAGING DIRECTORNOTES :- ‘Amember entiled to attend and vote al the meeting is entitied to appoint @ proxy to attend and Vote instead of himself. A proxy need not be a member. Proxies in order to be effective must be received by the Company not less than 48 hours before the time for holding the Annual General Meeting. 4, The relevant Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956 is annexed hereto. XPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES 1958. ITEM NO. 8 ‘As per the existing provisions of Article No. 74 of the Arlicles of Association of the Company. the Board of Directors 1s empowered to appoint any of its Directors as Managing Director, Whole-time Director, Executive Director, Special Director like Technical Director, Financial Director etc., for a fixed term not exceeding five years at a time and to pay the remuneration to them. Considering the strength of the Board of Directors of the Company, any of the non-retiring Managing Directors and / or Whole-time Directors and / or Executive Directors and / or Special Directors like Technical Directors and / or Financial Directors appointed for a fixed term may be reckoned or subjected to the retirement by rotation who will retire at any Annual General Meeting under the provisions of Section 255. 256 or other applicable provisions of the Companies Act, 1956 and reappointed as a Director in the same Annual General Meeting. Moreover, any of the Managing Directors and / or Whole-time Directors and / or Executive Directors and / or Special Directors like Technical Directors and / or Financial Directors appointed for @ fixed term who is liable to retire by rotation at any Annual General Meeting Under the provisions of Section 255, 256 or other applicable provisions of the Companies Act, 1956 2s per the terms of his appointment and reappointed as a Director in the same Annual General Meeting. Such reappointment by rotation of a Director at an Annual General Meeting does not cause any break in the office of a Director. However, it is thought fi, by way of abundant caution, to make a clear provision to that effect in the Articles of Association of the company for which the resolution mentioned in the accompanying notice is proposed{A) Shri Piyushohai O, Desai, Shri Pankajbhai R. Desai and Shri Raseshbhai R. Desai, the Managing Directors, and (B) Shri Paras P. Desai and Shri Parag R. Desai, the Executive Directors may be deemed to be concerned or interested in the said resolution as it pertains to ‘their appointment. Smt. Pannaben P. Desei, Smt. Pratimaben P. Desai, Smt. Krishnaben R. Desai and Smt. Maitriben D. Zaveri, being related to the said Managing / Executive Directors of the Company ‘may be deemed fo be concerned or interested in the said resolution. ‘The other Directors on the Board shall not be deemed to be concerned or interested in the said resolution, REGD. OFFICE : WAGH BAKRI HOUSE, OPP. PARIMAL GARDEN, AMBAWADI, AHMEDABAD-380 006 BY ORDER OF THE BOARD OF DIRECTORS, FOR GUJARAT TEA PROCESSORS & PACKERS LTD. Date ; 11" June, 2010 P.O. DESAI Place : Ahmedabad CHAIRMAN & MANAGING DIRECTORDIRECTORS' REPORT To, ‘The Members of GUJARAT TEA PROCESSORS & PACKERS LIMITED, Ahmedabad. |, on behalf of your Directors, present the Thirtieth Annual Report together with the Audited Accounts of the Company for the year ended 31st March, 2010. FINANCIAL RESULTS — a Rs. (In Lacs} Particulars 2005 2008. Sales - Inlacs Rs 45,143. sal 35,998.65 ~ Inlacs Kgs 239.52 236.0: Profit before Depreciation & Taxation 5,015.47) 3,616.61 jepreciation (313.63) (247-73) rofit before Taxation 4,701.84) 3,368.87} ‘axation Provisions (1,640.00) (1,150.00 [Deferred Tax 2.10 3.19) Fringe Benefit Tax (85.00) [Excess Provision for Taxation in earlier years jwritten back 68.35) [Profit For the Year after taxation "3,132.28 2,120.68 [Balance brought forward from Previous Year ~ 4,560.69, 4,037.52) \Utiized for issue of Sonus Shares (670.94) Balance Amount available for Appropriation 7,692.54 5.587 26] linterim Dividend paid and Tax thereon (801.56) (801.58) Final Dividend Recommended on Equity Shares (171.28) y [Tax on proposed final Dividend (28.45) iTransferred to General Reserve - (320.003 (225.00) Balance carried to Balance Sheet 6,371.69 4,560.69DIVIDEND Your Directors had declared and paid an Interim Dividend for the year 2009-10 @ Rs.4.00 per Equity Share ie. 40% on the paid-up equity share capital of Rs. 17,12,81,2501- in the month of February, 2010 In view of the encouraging performance of the Company during the year under review, your Directors further recommend a final dividend of Re. 1.00 per Equity Share, ie. 10% on the paid up equity share capital Outgo on account of Interim Dividend during 2009-10 was Rs, 801.58 lacs (inclusive of Rs. 116.44 lacs towards Dividend Tax) and outgo on account of Final Dividend ‘during 2009-10 would be Rs. 199.73 lacs (inclusive of Rs, 28.45 lacs towards Dividend Tax), thereby the total dividend outgo during 2009-10 would be Rs. 1001.29 lacs (inclusive of Rs. 144 89 lacs towards Dividend Tax) as against the previous year's total Dividend outgo of Rs. 801.56 lacs (inclusive of Rs. 116.44 lacs towards Dividend Tax). TEA SCENARIO Whenever we think of prevailing tea market condition, we should always think of production, export and domestic consumption. Last calendar year 2009, the annual tea production of our country ending 31" December 2009 was 978 million kgs. which was very satisfactory and afterwards during January to May, 2010, there was adequate rain fall during April and May, 2010 as a result production of tea is satisfactory, When we look at other tea producing countries like Sri Lanka and Kenya, where tea production is in excess during January to May, 2010 as compared to corresponding last year period from January to May, 2009, Sri Lanka is ahead by 20 million Kgs. and Kenya is ahead by 15 million Kgs. of Tea as the figures of May production published recently. So, overall availability of tea is very satisfactory at domestic market as well as at the overseas countries,‘So far as export of our tea is concerned til date, it is not encouraging as there is less demand as compared to previous year. However, fooking to overall picture, we hope that we might not have to pay high price for procurement of tea as we had paid during last year. Looking to the prevailing conditions, we nad taken lead in reducing prices of our brands by Rs.8/- to Rs.12/- per kg and if there would be further fall in procurement prices, we intend to reduce further during incoming months. REVIEW OF OPERATIONS During the year under review, "Wagh Bakn’, the flagship brand recorded value growth of 21.88% and strengthened its dominance in packet tea market in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra, Leveraging the strength of the premier brand “Wagh Bakri’, the channel is now successfully employed to drive growth of other brands, namely, “Mili” and “Good Morning”. Your Directors feel proud to report that “Good Morning” brand recorded substantial value growth of 86.65% and “Mili” brand demonstrated the most outstanding contribution and achievement by contributing 51.17% of growth in value Your Directors feel enthusiasm to report that your Company forayed into Hyderabad city continuing its expansion plans after entering into Goa and Delhi States in the previous year by launching Wagh Bakri / Mili / Good Morning Tea Packets under different pack sizes. In North, your Company is in the phase of expansion and currently operations are limited to Delhi. Your Company has already achieved volume of sales to 10,000 kgs. per month. Your Company has achieved remarkable growth in Maharashtra by 100%. In Maharashtra, your Company crossed a milestone of 1,00,000 kgs. per month and launched brands across 34 districts. Your Company as a part of customer development activities executed Ganesh Utsav, Star News event and trade development activities.‘Your Directors wish to state that the profitability of the Company has drastically improved during the year 2009-10. Your Company has earned profit affer tax of Rs.3,132.29 lacs during the year under review as against Rs. 2,120.68 lacs during the Previous year, showing a rise of 47.70% despite tough marketing competition from the regional as weil as Multinational Companies and global recession and exorbitant price rises in almost all commodities. FINANCE The Networth of the Company as at 31% March, 2010 stands at Rs. 132.83 crores and Book value of Equity share of the Company works out to Rs. 77.55 per share. Inventories were maintained at optimum level by effective monitoring by proper use of bank borrowing during the year under review. The overall liquidity position of the Company was comfortable throughout the year under review. During the Financial Year 2009-10, State Bank of India ¢ SBI) renewed Working Capital Limit in June 2009 and also sanctioned Term Loan for expansion projects. Your Directors are pleased to report that your company availed the part of the working capital limit at concessional rate of interest for a period of three months during the year under review from SBI. Moreover, your company also availed unsecured short term loan for a period of six months during the year under review at concessional rate of interest from other Bank ICRA has upgraded the rating of the company for the fund based working capital facilities to LAA from LAA- The outlook on the rating is stable EXPANSION PLANS Your Directors are happy to state that construction work for setting up of Tea Blending factory and storage facilities at Dholka location is going on full fledged and Is likely to complete by November, 2010. Your Company has also placed an order for "Semi Automated Storage & Retrieval System [SAS/RS]' with Godre] Efacec Automation &Roboties Ltd. at new Dholka factory which will enhance overall effectiveness in storage and handling of materials within the factory premises. Your Company has also placed an order for installing Proflex Roof System at new Dholka factory which is an innovative self supported roofing technology which ensures maintenance free life span of over five decades with utmost Protection to the goods, machineries and human. capital. Your Directors fee! immense pleasure to report that shortly Tea Testing laboratory will be established at Khokhra location in Ahmedabad city with latest equipments and machineries. This will help your company to strengthen and streamline its Tea testing Operations with finest quality standards and best Parameters. Your Directors are hopeful to start oper 1s during current financial year 2010-11. EXPORTS During the year under review, your Company initiated several steps to strengthen its international operations. Your Directors are pleased to inform that your Company's Exports turnover during the year under review has increased by 44,58% to Rs. 978.97 lacs from Rs, 677.09 lacs during the previous year. During the year under review, your Company has started full fledge exports to Australia and UK and now regularly supplying its "Packet Tea’ & “Staple Free’ Premium and Masala Chai Tea Bags. Your Company has developed POT TEA BAGS for Canada, which is the most potential market and ant ipating sizeable volume for this product from Canada and other countries. Your Company has also participated in ANUGA exhibition held in Koln (Germany) in October, 2008 and also participated in FOODEX exhibition held in Tokyo (Japan) in March, 2010. The overall response at both the exhibitions was quite good and your ‘Company has received various inquiries from various countries.HUMAN RESOURCES At Wagh Bakri Tea Group, as a forward looking organization, we believe our people are our biggest strength and key asset capital and an important business driver for the Company's sustained growth and profitability. Hence, your Company has built Performance oriented culture that rewards better performance. We strongly believe in attracting and retaining amongst the best talent in the industry and providing them a conducive and exciting environment for work. Your Company's employees are instrumental in your Company scaling new heights, year after year. Their commitment and contribution is deeply acknowledged. A continuous review of the mentoring process is underway and procedures and systems are being institutionalized across the organization. INTELLECTUAL PROPERTY RIGHTS AND LEGAL COMPLIANCES, Recognizing the importance of intellectual property rights across the world, the Legal Di ion of your Company has been increasingly stepping up efforts to oreate and Protect Intellectual Property for your Company in India as well as numerous countries on the globe. AS a measure of good corporate governance practice, your Company has adopted voluntary secretarial compliance audit which ensures that the Company conducts its business with high standards of legal, statutory and regulatory compliances. PUBLIC DEPOSITS Your Company has not accepted any deposits falling under the provisions of Section SBA of the Companies Act, 1956 and rules made thereunder. AUDITORS The Auditors, M/s C. C. Chokshi & Co., Chartered Accountants, Ahmedabad retire at the ensuing Annual General Meeting and are eligible for re-appointmentNotes on Accounts, referred to in the Auditors’ Report, are self explanatory and therefore do not cail for any further explanation RESPONSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act, 1956 the Directors confirm that 1. in the preparation of the annual accounts, the applicable accounting standards have been followed 2. appropriate accounting policies have been selected and applied consistently and have made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2010 and of the Profit & Loss Account for the year ended March 31, 2010, 3. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1958 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregulanties, 4. the annual accounts have been prepared on a going concern basis. AUDIT COMMITTEE In compliance of the provisions of section 292A of the Companies Act, 1956, the Company is having Audit Committee comprising of three Directors. Meetings and Attendance during the year ‘Sr.No. Name of Director Audit Committee Meetings Total Attended Shri Rajeshbhai C. Shah 2 2 Shri Bhushan Punani 2 2 Shri Parasbhai P. Desai 2 2RISK MANAGEMENT The business environment is ever changing that necessitates continuous evaluation and management of significant risks faced by the organization. The objective of risk management process is to appropriately evaluate and manage risks so as to meet the expectation of multiple stakeholders, sustaining and enhancing the competitive advantage. Your Company's all assets, properties, stock in transit, profits, human resources, product jiability, all purchases and sales etc. are adequately insured against major risks after taking into account all the relevant factors, including the risk benefit trade-off. CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility (CSR) has always been an integral part of the vision of your Company and has been the cornerstone of its core value of Good Corporate Citizenship. CSR for the Company is all encompassing, including making socially responsible products, engaging in responsible employee relations, and making a responsible commitment to the community by assisting various NGOs, Charitable Trusts, Hospitals, schools and medical research institutes. DIRECTORS Shri Parasbhai P. Desai, Smt. Maitriben D. Zaveri and Smt, Pannaben P. Desai, the Directors of the Company are retiring by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. INFORMATION REGARDING CONSERVATION OF ENERGY ETC. AND EMPLOYEES Information required under Section 217(1)(e) of the Companies Act, 1956 read with Rule 2 of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 pertaining to conservation of energy, technology absorption, foreign exchange earning & outgo to the extent possible in the opinion of your Directors are given in Annexure ‘A’ annexed hereto forming part of this Report.PARTICULARS OF EMPLOYEES US 217 (2A) OF THE COMPANIES ACT. 1958 Information as per sub-section (2A) of Section 217 of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is given in Annexure ‘BY annexed hereto forming part of this Report. ACKNOWLEDGEMENT Your Company is one of the largest Tea packaging companies in India, having a Portfolio of strong brands. On behalf of the Board and the Management team, we wish to thank you for your unstinting commitment, solidarity, and trust in us. The Board take this opportunity to place on record their deep appreciation of the dedication and commitment of employees at all levels in maintaining the sustained growth of your Company and remain in the forefront of Tea industry. Your Directors thank and express their gratitude for the support and co-operation received from the bankers, Statutory and Internal Auditors and afl other business associates and Consultants and other stakeholders including Customers, Vendors, Super Stockists and Distributors. ‘Your invoivement as shareholder is greatly valued. Your Directors look forward to your continuing support FOR AND ON BEHALF OF BOARD OF DIRECTORS. tL DATE : 11/06/2010 P. ©. DESAI PLACE : AHMEDABAD CHAIRMAN AND MANAGING DIRECTORGUJARAT TEA PROCESSORS & PACKERS LTD. ANNEXURE TO THE DIRECTORS’ REPORT ANNEXURE -‘A’ Particulars of Conservation of Energy and Technology absorption in terms of Section 217(1)(e) of the Companies Act. 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 forming part of Directors’ Report for the year ended 3ist March 2010, FORMA (See Rule 2) disclosure of Particulars with respect of one ‘A Power and fuel consumption Current Previous Yoar Year (200-10) (2008-08) 1. Electricity (@ Purchased Unit 5,58,051 491496 Total Amount (Fs.) 32.22.4485 27,80,406 Retefunit (2s) 877 5.65 (b) Own generation 40) Through diese! oii Rs.) 1.23487 245.431 {i Through steam turbine/generator Units NA NA Units per tr. of fue! oilgas Costunits 2. Coal (specity quality and where used) ‘Quantity (tonnes) Total cosvaverage rate NA. NA 3. Furnace ol! Quantity (k. Ltrs.) Total amounvAverage rate NA NA. 4. Other/intornal generation(please give details QuantityTotal cosvRate/unit NA NAB. Consumption per unit of production Tanar Previa —_— Yoar 2 Products(with details)annt = Electricty (Unit / MT of Tea) 2181 Furnace oi! : Coal (specity quaity) : : Others (specify) FORMB { See Rule 2) Form for disclosure of particulars with respect to technology absorption Research and development (R & D): 1 Specific areas in which R&D carried cut by the Company None 2. Benefits derived as a result of the above R & 0 None 3 Future plan of action None 4. Expenditure on R&D: (@) Capita) (b) Recurring (Total None (@) Total R & D expenditure as a percentage of total turnover Tech tion, adaptation and innovation 1. Efforts in brief, made towards technology absorption, adaptation None and innovation 2 Benefits derived as a result of the above efforts, eg. product, None improvement, cost reduction, product development, import Substitution, etc 3. Incase of imported technology - ‘imported during the last 5 years reckoned from the beginning of the financial year}, following information may be furnished (a) Technology imported, - (©). Year of import, - (6) Has technology been fully - absorbed ? (a) If not fully absorbed, areas - Where this has not taken place, reasons therefore and future plans of action,F Earnings & O1 Particulars of Foreign Exchange earnings and outgo in terms of Section 217(1Ne) of the Companies Act, 1966 read withthe Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 forming part of Director's Report for the year ended 31st March, 2010. During the year under review. products of the Company were exported to U.S.A/Canada / U.K/ Australia For the year 2009-10, Foreign Exchange eamed during the year was Rs. 976.97 Lacs (Previous Year 677.09 Lacs) and the Foreign Exchange outgo was Rs 180.44 Lacs (Previous Year Rs. 145.33 Lacs} FOR AND ON BEHALF OF BOARD OF DIRECTORS DATE : 11/06/2010 “P.O. DESAI PLACE: AHMEDABAD CHAIRMAN AND MANAGING DIRECTORANNAXURE - B Information as_per section 217(2A) of the Companies Act,1956 read with The Companies (Particulars of Employees) Rules, 1975 and forming part of the Directors Report for the year ended 31st March, 2010, ‘Sr Name & Age Quali Datoof Remuneration Experi Employment Nature of No. Designation fication joining & ence held Before Employment Porquistes ast nig (*) EMPLOYED THROUGHOUT THE YEAR, 1. Shri Piyuthkumar 0 Dosal- 70 0.Com OWOEOS Rs 62.28.6205 Standard Tea Contractual! ‘Chakman & Managing Ouecoe Processing cat 2 Shri Pankajhumar R Desai- 68 8.Com 200980 Re 6242270- 50 Na ‘Contractual ‘vce Chan & Managing Direct 03, Shei RasoshumarR Deesl- 63 SE 22080 Rs GZasa 44 Na Conractua Managing Dneclor tech) 04. Shui Paras P Dos 37 B.Com. $MOTIOS Re 43.04.800- 15 Standord Tea Contacts! Executve Dvecter Cima in Processing eat Stasis, USA) co. 05 Shai Parag R Dessi- 37 BCom | 270805 As. 45,08,690- 15 MA Contracts nective Dvector Man (USA) 06 Shel Adaran & Chopra —§1 8. Com ‘710807 Rs. 34.8R88% 99 Hinduoton Lever Ls NA Prosident= Tea OF. Shri TwaharB, THpathi 39 BE 120808 Rs. 25.60.74 18 Pepsicalndian Holdings LL NA. ‘Vieo Pree! operations (Mecrancal 08, Shri Sanjay G. Jalan 37 B.Sc ONZE Rs, 27.24.57 20 Heine India Pvt Li NA 'Sr General Manager Salas (8) EMPLOYED FOR PART OF THE YEAR DY. ShriNWvas.G. Sellen St BSc. 17/0007 Rs. 10.28.00 26 Gods) Sas Loe id NA Exacuive Vice Present. MRIS Sales 6 Maraaiep [Lotte the month of June, 2008) (02, ShwiDhlren S. Shah BSc, 02100100 Re 177,720. 18 ADF Foods Lie NA Presicent [Finance 8 Accounis] ACA Note : Remuneration shown above alsa includes Compsry’s contibution to Provicent Fund & superannuation Wherever applicabie, Remuneration in case oF Directors else include commission paid on net profs FOR AND ON BEHALF OF BOARD OF DIRECTORS ¢ te DATE : 11/06/2010 P.O. DESAI PLACE : AHMEDABAD CHAIRMAN AND MANAGING DIRECTORc. C. Chokshi Sanne acotans Trertage, 3rd Foe & Co. eciercom ‘Anereaabad 380018 Tol 49146) 2758252 Cn 27592543 (si gs eoursiee fax 8109) 27500551 AUDITORS? REPORT TO THE MEMBERS OF GUJARAT TEA PROCESSORS & PACKERS LIMITED We have audited the attached Balance Sheet of GUJARAT TEA PROCESSORS & PACKERS LIMITED ("the Company”) as at 31st March, 2010, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both annexed thereto. These financial statements are the responsibility of the Company"s Managoment. Our responsibility is to expr. ss an opinion on these financisl statements based on our audit We conducted our audit in accordance with the auditing standards generally accepted in India, ‘Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also ineludes assessing the accounting, principles used and the significant estimates made by the Management, as well as evaluating the overall financial statement presentation, We believe that our audit provides a reasonable basis for our opinion, As required by the Companies (Auditor's Report) Order, 2003 (CARO) issued by the Central Government in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows: (a) we have oblained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; (b) in our opinion, proper books of aecount as required by law have been kept by the ‘Company so far as it appears from our examination of those hooks: (c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the books of account; (4) in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 21 1(3C) of the Companies Act, 1956; (&) in our opinion and to the best of our information and according to tho explanations piven 0 us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: &C. C. Chokshi Stoned stountans & Co. ny Gi) Gil) Hestage, 20 Flo, Near Gujarat veep OH Sarwar Road, ‘shenedaba 80 904 ets 691 73 27580542 131 0a) 7382503 119) 66073100 Foe (310912758255) in the case of the Balance Sheet, of the state of affairs of the Company as at 31" March, 2010; in the case of the Profit and Loss Account, of the profit of the Company for the year ended on that date and in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. 5. On the basis of the written representations received from the Directors as on 31" March, 2010 taken on record by the Board of Directors, none of the Directors is disqualified as on 31" March, 2010 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act. 1956. Ahmedabad, For C. C, CHOKSHI & CO. Chartered Accountants (Regisjration No. |01876W) Gaurav J, Shah. Partner (Membership No. 35701) 4 fArune, 2010Ce Chota 8 Co Chartered Accountants c. c. Choksh "Weritage’, 3rd Floor, & Co. =" 231 9 6607300 fax 19179) e1500559 ANNEXURE TO THE AUDITORS’ REPORT (Referred 40 in paragraph 3 of our report of even date) (i) Having regard to the nature of the Company's business/activities/resul, clauses (x). (xiii) and (xv) of CARO are not applicable. Gi) In respect of its fixed assets: (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets. (b) ‘The fixed assets were physically verified during the year by the Management. According to the information and explanations given to us, no material discrepancies were noticed on such verification. (e) ‘The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company. (iii) In respect of its inventory: (2) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals. (b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business, (©) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. (iv) The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties listed in the Register maintained under Section 301 of the Companies Act. 1956. (¥) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods and services, During the course of our audit, we have not observed any major weakness in such internal conteol system. oeC. C. Chokshi Sorte tae & Co. Osuna none [ov ee073100 Fae 1819) 27880881 (vi) In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956. to the best of our knowledge and belief and according to the information and explanations given to us: (2) ‘The particulars of contracts or arrangements referred 1 Section 301 that needed to be entered in the Register maintained under the said Section have been so entered. (b) Where each of such transaction is in excess of Rs.5 lakhs in respect of any pany. the transactions have been made at prives which are prima facie reasonable having regard to the prevailing market prices al the relevant time except in respect of certain purchases for which comparable quotations are not available and in respect of which we are unable to comunent. (vii) According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year. (viii) In our opinion, the internal audit functions carried out during the year by a firm of Chartered Accountants appointed by the management have been commensurate with the size of the Company and the nature of its business (ix) ‘The maintenance of cost records has not been prescribed by the Central Government under section 209(1 id) of the Companies Act, 1956 in respect of any product of the Company during the year covered by our audit report (x) According to the information and explanations given to us in respect of statutory dues: (a) The Company has generally been regular in depositing undisputed ducs, including provident fund, investor education and protection fund, employces® state insurance, income-tax, sales tax, wealth tax. service tax, custom duty, excise duty, cess and other material statutory dues applicable to it with the appropriate authorities. {b) There were no undisputed amounts payable in respect of the above that were in arrears as at 31st March, 2010 for a period of more than six months fromm the date they became payable (©) There are no dues of sales tax, wealth tax, service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute. Details of dues of income-tax, which have not been deposited as on 31“ March, 2010 on account of disputes are given below gecc. & Co. txi) (xii) (xiii) (xiv) ow) Chokshi Shoered Reaniants erage re oot, ‘Anmedabad 380 014 Tel: 9179927582542 Tous) 27ss2sea st Gs se073 100 an Lat 79) 27560551 Nature | Forum where Dispute is | Period ta which | Amount of Dues pending ‘theamount | involved relates (Rs. in | lakis) | Income-tax | Penalty | Commissioner of ALY. 2004-05 1LI7 Act, 1961 Income-tax (Appeals) Income-tax | Income | Assessing Officer, for | A.Y. 2003-06 1.90 Act 1961 | -tox | giving effect to | directions and order of ITAT Income-tax | Penalty | Commissioner of AY, 2005-06 2.21 Act, 1961 Income-tax (Appeals) Income-tax._| Income | Commissioner of ALY. 2006-07 5.84 Act, 1961 | tax Income-tax (Appeals) Income-tax | Penalty | Commissioner of Block Period 11.04 Act, 1961 Income-tax (Appeals) | 01-04-1988 to. 29-07-1998 In our opinion and according to the information and explanations given 10 us, the Company has not defaited in the repayment of dues to banks. The Company did not have any outstanding dues to any financial institution or debenture holders during the year covered by our audit report According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions In our opinion and according to the information and explanations given to us, the term loans have been applied for the purposes for which they were obtained. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long- term investment,i GC. Choksti & Co. C. C. Chokshi Stonned ears & Co. a cer ene Ahmedabad 380.014 we st az lohan (xvi) The Company has not made any preferential allotment of shares during the year to parties and companies covered in the Register maintained under ‘ection 301 of the Companies Act, 1956. (xvii) ‘The Company had not issued any debentures during the year and did not have any outstanding debentures during the year. (xviii) During the year the Company has not raised any money by public issue (xix) To the hest of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has been notived or reported during the year. For C. C. CHOKSHI & CO. Chartered Accountants (Registration No. 101876W) Stal, Gaurav J, Shah Partner (Membership No. 35701) Ahmedabad, 4 {AJune, 2010GUJARAT TEA PROCESSORS & PACKERS LIMITED BALANCE SHEET AS AT 31ST MARCH 2010 Anat Asat 31032010 34.03.2008 Schedule "Rupees Rupees ‘SOURCES OF FUNDS SAAREHOLDERS’ FUNDS Shae Capital : 71.281 280, 171,281,250 Reserves 978 Surpas 2 Laszo0r.as 93 007840 TS28.206555 7116 193,000 LOAN FUNDS Secured Loans 2 2.004087 Unsecured Loans, a DEFERRED TAX LIABILITY (NET) 9.205.088 [See Note 8 af Senedute 19) TOTAL Sa REC AT APPLICATION OF FUNDS FRED ASSETS. 5 Gross Block s0aosa.sr0 397 601.710 Less Depreciation & Amortieation s5.512203, s29gis.721, et Bisee 25,188,185 257 674,503 CCaptal Woricn- Progress ncuting Catal Aavancos Rs. 9.256.982 Previo Year Rs Nl] 25.902.395, PRICES INVESTMENTS 6 122.500 ESS ‘CURRENT ASSETS, LOANS AND ADVANCES. Inverters | 7 a8 505.920 751243.061 ‘Sundry Debtors e 12 273604 se09.875 (Cash ang Ban Balance s so 692.568 poagen srt ther Curent Assets X 6.930 205, 121884 Loans and Bévancas " 36.126.387 s512,186 T7478 SRIEXEKI LESS : CURRENT LIABILITIES AND PROVISIONS Curent Lait 2 200 653.887 2sasorsae Provinant, 3 10385, 191 7,380.45 353,576 675 NET CURRENT ASSETS. 7262. 785.200 ‘B97 238 TOTAL ria Sisaee Signiticant Accounting Policies & Notas forming part of 9 Accounts TROUT ETEDTS BDO TOT BN HOT FTO He SITS Ir terms of eu sport attached Farand on bale the oo of ecors FORC. €. Chokahi & Co « . (Chartered Accountants Cc aoe Chainran & Managing Deecior (Gaurav J. Shan) ee Ser ¥ Fata W901 mes § Hao Der Proce: annwsnbod Teed Fa cae LP Tune, 2OE NXE 0 oe lenagng Ovecton - hit CCamiatiy Serenny Bycutive Dee Frondve Oieotr Pace Abpea eee Tame, releGUJARAT TEA PROCESSORS & PACKERS LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010 veins es wea coum RS wo vom Sess Same ct Invent seta SB areas wists Sane —— cra om some ana ia5 amis mr . sons egumae (Chartered Accountants D - OV ner, Stal chan farang Drecior eembersie No sS70 SIF, Padre EP ere 7 a Menecing Drecior K Geer if oi oa te Drost icesChaiman & Manscn9 Onecler Eaminy Sennory Place Anmedabad owe dune 2e10GUJARAT TEA PROCESSORS & PACKERS LTD, ‘CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2010 [poacuae Year ended 3-55-70 Year ended 3143-09 Fupres [Rupees Rupess | Rupene a) CASHFLOW FROM OPERATING ACTIVITIES Ne Prot Betore Tax aro. 336.887.157 Doprcanoe anata m2 aarra.236 Peto ste of assis fer.09) (30% 638) (PrettyLass on satradomplon ctinveeens ano ean ‘Simnusgnin valve aires : "8128 Unreal Exchange (Grane 73208 cssaret Dns Race ves 122.800) (22800) eee coe (25599 208) oosss227) usest pane ziarssor _pegosava| 24.2850 s5asaan6 ‘Operating profit before workeng capa changes “er053.602 382.245,03 Adjusts for Troge an ether eacenables |s0.24.615) c2asaz08) Iosenes 26.2029) 57935.907) rate anc omer payables en076277 _easgoz0n 3985.400 267,120,905 {cash generate rom operations anes 35.115008 Diecast (sa.00 579 317704540) [NET CASH FROM: (USED IN} OPERATING ACTIVITIES [a> 7229,08612 (0260045) li CASHFLOW FROM INVESTING ACTIVITIES Prrchate a eed ast (as.ro410) 4.70587) Soot nad asset Dano. vassane Poucnase a invent 120.000 000) Fesensten of mesos 2500000 seaas297 Divison Recaied 22500 22800 Inert Recs gaa 20.3 35, NET CASH USEO WN INVESTING ACTIVITIES [a] ansiaots| 1.6.64) fcr cAsH FLOW FROM FINANCING ACTIVITES Ineenge Secured Lane tzongoar : Ineeaseia Uren aes 260 200,000 : Divan Pow a 58.208 sasi5c0n lores Poe 120405,0T1 2416138) NET CASH FROMIWISED Ny FINANCING ACTIVITES [6] srge4200 7576.09 Nix incre cease in enh &saghequnton's [803 ‘a0 0.851 68.60,00) Cash or! cast equine t beng th yar meazensrs nazar, cr ofan sun es Gch ae ea eaussante {a0 rast {cas and cash equyaants at nd af the year a. 586 zaagea.i1tGUJARAT TEA PROCESSORS & PACKERS LTD. CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2010 (tes 1 Figures racsete essen outs 2 Cash ana ean equi msde amounts not aia formed use Foe Depots pledged wit sans =e 14.90.00 Prawns Yaar Re NA 8 The otovecasilow satarant hss been spate une te induct Nato ass cute the Acuing Stndard-3on Cash Flow Sx! ‘ew he nse Chartoog acosunan i 4 Provous jes figures have been reouped eres nese tas of ow apt atcha FOR €.¢.chokshi& Co, Fovang un bara of te Bost ot Deco (Chanter Accountants a (onan St) aire 2 “RR senna rtrd oy Dn ome SUK June, 2040 [Ann Des . = ae x verssnwonen ee = VU) Comms ee ESD) om Fat cer vee Anpedabed “ we June 2eleGUJARAT TEA PROCESSORS & PACKERS LIMITED ‘Schedules forming part of the Balance Sheet as at 31st March 2010 As at As at 31-03-2010 31.03.2009 Rupees Rupees ‘SCHEDULE-1 SHARE CAPITAL Authorised 119,900,006 Equity Shares of Rs. t0 each 180,000,000 198,000,000 10,000 14% Redeemable Preference Shares of Re, 100 each 4,000,000 4,000,000, "250,000,000 "200,000,000 Issued, Subscribed and Paid-up 17,128,125 Equity Shares of Rs, 10 each fully pake-up 171,281,250 171,281,250 TOTAL rz 250. 474,281,250. Notes:- Out of the above 1) 16,009,375 Equity Shares were allotted as fully psid up Bonus Shares by way of capitalisation of amounts from the balances of General Reserve and Profit and Loss Account 2} 1,968, 750 Equity Shares of s.10 each, were allotted as fully paid-up to the shareholders of erstwhile Standard Tea Processing Co. Lid. pursuant to the scheme of amalgamation, for consideration other than cash SCHEDULE-2 RESERVES AND SURPLUS General Reserve As per last Balance Sheet 487,980,374 485,088,374 ‘Add: Transfer tom Profit and Loss Account 32,000,000 22,500,000, Bigswe.a7e = 4B. SRB.ITA Capital Redemption Resorve As perlast Balance Sheet 250,000 250,000 Profit and Loss Account, 637,189,041 450,088,486 TOTAL Tar norats «= 543,907,840.GUJARAT TEA PROCESSORS & PACKERS LIMITED Schedules forming part of the Balance Sheet as at 31st March 2010 SCHEDULE-3 SECURED LOANS From Banks ‘Term Loan from a bank [Amount Que within one year Rs, 467,087 (Previous Year ° Rs. Nill Interest accrued and due on above Overdratt against Fixed Deposits TOTAL Notes : 41, Term Loan from a bank’ sacured by 2 charge by way of hypothecation of machinery purchased /10 be purchased out of the bank finance and equitable mortgage of specific immovable properties of the Company and also by hypothecation of present and future current assets of the company as collateral security 2. Overdraft against Fixed Denasits are secured by pledge of Fixed Deposit Receipts of respective banks. ‘SCHEDUL! UNSECURED LOANS. ‘Short Term Loan froma bank TOTAL Asat Asat 31-03-2010 31-03-2009 Rupees Rupees gat 742 - 6015 - 2,856 280 2 200,000,000 -‘eg BuISN0} anteselo-9 € ul sasiWard aoyo Jo edsas san2ys 71500 Bu eueriSTa7 | epeaeent [ws ieeT [oee eure [eo TOVTOL | OLE Loeas [STATE ETERS OTS IEE osc'vis's92 | sor'serzsz | cer’zue'ss: | sse'uss's | szococ'se | rzv'eze'ezt | exs'aso'enr | co'see' | wev'zeete | onw'sog'use ezezes | sseeue | epaiy arose Jerezoe | sectees zsozer's | ors'esae siseroui jveezisse | queer |soo'zre'» res'ere'® | reg-izoor | zovsev'ez omar | znveer'r | seecaee aeveoere |ociversz | spevorer |iease | eres | zzs'zss'er | eowsave: | savace [ere rec'e | rovesr'ee savesvee | vessor'ss | soos | survey losr'eorer | eersiove |siresseu | aes | roscoe _|ozeervou seco |oizaoe | uezsna eee | ae ees ae ete zeevar'ss | szoeus'oe | zee'eoo'sr esv965' | cze'sosior | as6'sJe'z0t zewios | euveee'tes vevrsois | izirsals izs'sa0'1g Lev esos 3e a a oI a a = oI BoaReOTE | OTECOTE | HHOECOTE | HuTMISTIEY STiaSAT ‘e007-Fo-T wesy wesy wesy | ssuonmnpag | se9k auto rsuonmnpea | suonpey | iesy — | SOE ON, owesioury j uoneioe1daq, {is09 ie) wore $5015 sername siassv oa S31003HOS 0107 UorEW ISLE 1e Se Jays eoURIe eyL Jo Wed BuIL4O} Sainpayas GaLIWN S¥ayOVd 8 SHOSSaD0ud VAL LvEYrNS.GUJARAT TEA PROCESSORS & PACKERS LIMITED Schedules forming part of the Balance Sheet as at 31st March 2010 As at Asat 34-03-2010 31-03-2009, Rupees Rupees SCHEDULE-6 INVESTMENTS: Long Term (Non trade, at Cost) Shares and Bonds. Quoted 300 Equity Shares of Kitply Industies Ltd. of Rs. 19 each fully paid-up 8,000 ,000 115, 9.5% Tax Free Bonds of Sardar Sarovar Nigam Ltd, (18 Bonds of face value of Rs. 100,000 each 100 Bonds of face value of Rs. 10,000 each } - 2.712.500 Less : Provision for diminution in value 181,250 2:537,250 Unquoted 7,800 Equity Shares of the Kalupur Commercial Co-operative Bank Ltd, of Rs. 25 each fully paic-up 187,500 187,500 TOTAL 192,500 2723780 Notes : Aggregate cost of Quoted Investments 5.000 2,717,500 Aggregate cost of Unquoted Investments, 187,500 187,500, Market Value of Quoted Investments 2,130 2,534,334 ‘SCHEDULE-7_ INVENTORIES Packing Materials {Inclucing Goods in Transit Rs. 1,454,679 (Provious Year . Rs. Nil)} 29,546,005 25,887,236 Raw Matorials [Jnclucing Goods in Transit 778,838,119 676,587,370 Rs, 6,916,808 (Previous Year : Rs. 4,147,716) Finished Goods: Packed 40,644,467 29,981,464 Blended 36.052.427 24,993,004 Presmixes. 427.912 Tae i505,930 © 751,243,061GUJARAT TEA PROCESSORS & PACKERS LIMITED ‘Schedules forming part of the Balance Sheet as at 31st March 2010 SCHEDULE-8 SUNDRY DEBTOR: ured) Debts outstanding for a period exceeding six months Others Debts" Considered Good TOTAL “includes : {a) Due from a firm in which a director of the Company isa partner (b) Due from Companies under the same management 1. Evergreen Beveragos Ltd 2 PigjiTea Li 3, Jayalaxmi Mult Trade Pvt Ltd 4 Jogruti Mut Trade Pot Ltd 5. Krishnalaseni Muli Trade Pvt, Lid SCHEDULE.9 CASH AND BANK BALANCES Cash on Hand Balances with Scheduled Banks In Current Accounts In Fixed Deposit Accounts [lacludes Fined Deposits pledged wih Banks Rs 13,500,000 (Previous Year Rs. Ni Balance with a Non-Scheduled Bank: InCurrent Account with ARmedabad District Co-operative Bank Lt [Maximum Balance outstaniting at any {me during the year Rs. 4,669 (Previous Year: Rs. 4,669)), TOTAL Asat 31-03-2010 Rupees 132,870,631 Ta 30,110 43223 3,208 3309 3.309 438,082 s2erar2 41,900,400 TS Asat 34-03-2009 Rupees 99,899,876 199,599,576. 74,798 54,258 4282 68.801 35,742,964 188,485,737 4,669 TaGUJARAT TEA PROCESSORS & PACKERS LIMITED ‘Schedules forming part of the Balance Sheet as at 31st March 2010 SCHEDULE-10 OTHER CURRENT ASSETS Interest acoruad ‘On Investments (On Fixed Deposits DEPB License Export Incentive Receivable TOTAL SCHEDULE-11 LOANS AND ADVANCES (Unsecured, Considered Good) ‘Advances recoverable in cash or n kind or for value to be received Deposits ‘Advance tax Paid (Not TOTAL Asat 31-03-2010 Rupees 4.598.173 212,083 5350206 4,134,398 7,948,443, 4,043,546, a Asat 31-03-2009 Rupees 109,966 10,093,940 96,425, 316,333 7,216,664 6,402,720 9,409,426 EASEGUJARAT TEA PROCESSORS & PACKERS LIMITED Schedules forming part of the Balance Sheet as at 31st March 2010 SCHEDULE-12 CURRENT ITIES Sundry Creditors Due to Micro and Small Enterprises [See Note 5 of Schedule 19}, Others Advances from Customers Staff Security Deposits Trade Deposits Interest Accrued but not due on Term Loan Other Liabiliios TOTAL, SCHEDULE-13 PROVISIONS Provision for Taxation (Net) Proposed Dividend ‘Tax on Proposed Dividend Provision for Gratuity Provision for Compensated Absences TOTAL Asat 34-03-2010 Rupees 3,851,831 175 808,242 130, 160,073 3,285,804 973,751 128,238,333 49,315 33,546,721 3,653,587 8,952,368 17,128,125 2.844,767, 5.08s,805, 5,321,488 PUREE Asat 31-03-2008 Rupees 3.283.016 101,016,063 108,209,079 2,529,126 584,060 101,196,760 24,862,514 253,407 Sas 11,983,276 4,101,688 4,400,169 SaGUJARAT TEA PROCESSORS & PACKERS LIMITED ‘Schedules forming part of the Profit And Loss Account for the Year Ended 31st March 2010 Year Ended 31-03-2010 Rupees SCHEDULE-14 OTHER INCOME Interest (Gross) ‘On Fixed Deposits with Banks [Tax Deducted at Source Rs, 3,318,312 (Previous Year : Rs. 5,864,363)) 20,869,798 ‘On Sales Tax Refund 2.244.193, ‘On investment 123,240 ‘On Others [Tax Deducted al Source Rs. 312.740 (Previous Year Rs, 182.781)] 2,402,034 Dividend 22,500 Profit on Sale of Fixed Assets (Net) 611,199 Profil on Sale of Investments (Net) - Job Work Charges (Tax Deducted al Source Rs. 4,316 (Previous Year: Rs. 16,391)} 172,688 ‘Sundry Balances Writen Back (Net) 142,26 Sales Tax Refund 8,501,668 Exchange Fluctuation Gain (Net) - Export incentive 5.216.738, Miscellaneous Income 2.460.942 TOTAL 42,767,194 SCHEDULE-15 (INCREASE) / DECREASE IN STOCKS OF FINISHED GOODS Closing Stock Packed 40,644,467 Blended 36,052,427 Pre-mixes 427.92 aaa Les: pening Stock Packod 23,981,464 Blended 4,993,008 Pre-mxes 123,987 Net (Increase) / Decrease Year Ended 31-03-2008 Rupees 25,778,625 2,832,108, 237,500 1.987.388 22,500 391.638 2,421,297 6s4,955 112,961 8.211.769 5,484,435 2,343,705 2,603,779 53,072, 366_ 23,901,464 24'893.008 288 Fiea7 455 15,003,086 22307057 S093 Saran. Tear s9yGUJARAT TEA PROCESSORS & PACKERS LIMITED ‘Schedules forming part of the Profit And Loss Account for the Year Ended 34st March 2010 SCHEDULE-16 {TS TO AND PROVISIONS FOR EMPLOYEES Salanies, Wages and Bonus Centributons te Provident and other funds Statt Wettera Expenses TOTAL SCHEDULE.17 MANUFACTURING AND OTHER EXPENSES Packing Matarals Consumed Purchasa of Pre-rnx Materais Purchase of Malerals - Tea Parour ‘Contract Latour Charaes Powor and Fuel Insurance Rent Ratos and Taxes Stationery, Printing, Postage and Telephone Repairs and Maintenance Plant and Mactinery Builaings Others Legal ane Professional Fass Directors’ Siting Fees Acvertsemert, Publicly anc Sales Promotion ‘Seling ancl Distribution Expenses Royalty Exchenge Fluctuation Loss (Nat) imouto in value of Investrent Loss on Redemption of Investment Banations Conveyance and Travaling General Charges TOTAL ‘SCHEDULE-18, INTEREST (On Cash Cred and Overeratt Acconunts On Term Loen Gtners ‘TOTAL, ‘Year Ended 31-03-2010 Rupees. 128,475,113 43,750,152 2,943,253, EERE 125,438,588 6,438,152 291,723 6.012.414 6.397.381 7.280.085, 18,726,551 3.586,014 5.633.801 2.294.041 3.077.018 2.740.571 8.105.630 13,324,337 "290,000 199,044,877 46,585,738 122,818,010 2.464,268, 31,280 8,100,000 19,738,597 22777878 a 3.406 330 4,032,421 14,034,355 aaa Year Ended 31-03-2009 Rupees 100,292,582 1,363,024 2637515 aT 128,144,939 972549 163,755 28,543,832 5.753.876 6.278.365 17,903,804 3,691,830 4,840,023, 1,047,823 21853,073 2,303,985, 6,204,859 11,518,678 170,000 $99,195,085 29,360,181 100.746.252 181.280 3,000,000, 21,589,042, 21,928,729 ee 13,376,580 10,882,428 PIPEGUJARAT TEA PROCESSORS & PACKERS LTO. ‘Schedule - 19 Significant Accounting Poticies and Notes forming part of Accounts 1 Sig 3. ificant Accounting Policies Basis of Preparation of Financial Statements The financial statements are prepared under the historical cost convention on acerual basis in accordance with the requirements of the Companies Act, 1956, including the accounting standards notified by the Central Government of India under Section 211(3C) of the Companies Act, 1956. Use of Estimates ‘The preparation of financial statements. in conformity with the generally accepted accounting principles requires that the management makes estimates and assumptions that affect the Feported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods, Fixed Assets Fixed Assets are stated at cost of acquisition less accurnulated depreciation and impairment loss. if any. Cost of fixed assets comprises of purchase price, duties, levies and directly attributable cost of bringing the asset to ts working condition for intended use. Depreciation Depreciation is provided as per the Written Down Value Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, Assets costing less than Rs 5,000 individually are fully depreciated in the year of purchase. Intangible assets (computer software) are stated at cost and are amortised equally over a Period of three to five years from the year in which incurred. Improvements to leasehold property are amortized equally over a period of three years from the year in which cost is incurred. Investments Long-term investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary. in the value of long term investments. Current investments are stated at the lower of cost and fair value determined on an individual investment basis. Inventories Raw Materials, Packing Materials and Premix Materials are valued at lower of cost and net realisable value. Cost is determnined on Specific Identification / FIFO basis. Finished goods are valued al lower of cost and net realisable value. Cost comprises cost of raw materiais and other direct and indirect costs incurred in bringing the inventories to their present location and condition. Cost is determined on specific identification basis, Employee Benefits Defined contribution plans Company's contributions under defined contrioution schemes such as Provident Fund. Superannuation Fund, Employee State Insurance ete. are determined under the relevant schemes and! or statute and : harged to the Profit & Loss Account as incurred.GUJARAT TEA PROCESSORS & PACKERS LTD. ‘Schedule - 19 Significant Accounting Policies and Notes forming part of Accounts Defined benefit plans and compensated absences ‘Company's liability towards gratuity and compensated absences are actuarially determined ‘and provided for at each balance sheet date using the projected unit credit method. Actuarial ‘gains and losses are recognized immediately in the Profit and Loss Account as income or expense, Revenue Recognition Revenue from sale of products is recognised on despatch of goods to the customers, Sales are stated exclusive of VAT and trade discount, Income from services rendered is recognised whan the related service is performed. Dividend income is recognised when the right to receive the dividend is established Interest income is recognised on time proportion basis. Export incentive income and Sales-tax refunds are recognised when there is no significant uungertainty regarding realisation 9. Foreign Currency Transactions Transactions denominated in foreign currencies ere recorded at the exchenge rate prevailing at the time of the transaction. Monetary items denominated in foreign currencies al the year ‘end are restated at the year-end rates. Non monetary foreign currency items are carried at cost, Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Account. 10. Taxation Current Tax Provision for current tax is made in accordance with the Income Tax laws prevailing for the relevant assessment years, Deferred Taxation Deferred tax resulting from "timing differences” between book and taxable profit is accounted for using the tax rates and laws that have been substantively enacted as on the balance sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that the asset can be realised in future. 11.Provisions, Contingent Liabilities and Contingent Assets ‘A provision is recognises when the Company has a prosent obligation as a result of past events, for which itis probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made. Provisions are reviewed regularly and are adjusted where necessary to reflect the current best estimate of the obligation A disclosure for contingent liabilities is made where there is a possible obligation or @ present obligation that probably will nt require an outflow af resources, When there is & possible or a present obligation for which the likelihood of ouliow of resources is remote, ny provision or disclosure is made. Contingent assets are neithor recognised nor disclosed in the financial statements.GUJARAT TEA PROCESSORS & PACKERS LTD. Schedule - 19 Significant Accounting Policies and Notes forming part of Accounts Wl, Notes Forming Part of Accounts 4. Commitments & Contingent Liabilities a) Commitments Estimated amount of contracts remaining to be executed on Capital Account and not provided tor is Rs. 114,838,755 (Previous year Rs, 899,250}. b) Contingent liabilities in respect of disputed income tax matters - Rs. 4,536,663 (Previous year Rs. 990,897), 2. Operating Leases a) The Company has entered into leave and license agreements for taking office premises along with furniture and fictures as applicable and godown premises/space for vending machines on rental basis for a period ranging from 12 to 60 months, The specified disclosure in respect of these agreements is given below: YearEnded Year Ended 31-03-2010 31-03-2009 Rupees, Rupees (2) “Lease payments recognised in the Profit and Loss 18,596,037 17,822,402 account ‘The Company has given refundable, interest free security deposits under certain agreements, @ ii, Certain agreements contain a provision for their renewal (3) Future minimum lease payments under non- cancellable operating leases are as follows: i. Not later than ane year 13,385,874 10,349,565 | Later than one year but not later than’5 years 11,780,000 7,805,424 ii, Later than 5 years 600.970 610,986 b) The Company has let out portions of its office premises along with furture and fixtures as applicable on operating leases for a period of three years. Leas» rental income recognized in the Profit and Loss Account for the year is Rs. 182,048 (P evious year Rs 184.277)GUJARAT TEA PROCESSORS & PACKERS LTD. Schedule - 19 Significant Accounting Policies and Notes forming part of Accounts ‘The total future lease rentals receivable at the Balance Sheet date are as under: 1)” Fora period not later than one year (2) “For a period later than one year but not later than 5 years 3. Employee Benefits ‘The disclosures required as per AS -15 (Revised) are as under: Year Ended 31-03-2010 Rupees Year Ended 31-03-2009 Rupees 77.229 The Company has a defined benefit gratuity plan. Every employee whe has completed five years or more of service gels a gratuity on departure at 15 days saiary (last drawn salary) for ‘each completed year of service. The scheme is funded with Aviva Life Insurance Go. Lid. and Life insurance Corporation of India in the form of a qualifying insurance policy. ‘@__ Amount recognised in the Balance Sheet Present value of funded obligations Fair value of pian assets Present value of unfunded obligations Unrecognised past service cost Net lability ‘Amount in the Balance Sheet Liabilities Assets Net liability b Amounts recognised in the Statement of Profit and Loss Current service cost Interest on obligation Expected retum on plen assets Net actuarial losses{(gains} rcogrised in the year Past service cost Lossesi(gains) on curtailmerts and settlement Tolal, included in “employee senefil expense” Actual return an plan assets, Gratuity. _ 31-03-2010 31-03-2009 Rupees Rupees 11,279,021 9,346,891 11,279,021 9,346,891 6,085,805, 4,101,686 6,085,805 4,101,686 6.085.805 4,101,686 6,085,805. 4,101,686 4,725,698 1,632,643 11102,783 816,954 (928,166) (787,150) 1,521,128 4,114,224 3471443 2.776671 995.876 534,303GUJARAT TEA PROCESSORS & PACKERS LTD. Schedule - 19 ‘Significant Accounting Policies and Notes forming part of Accounts 31-03-2010 34-03-2009 Rupees Rupees, Changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances thereof ‘Opening defined benefit obligation , 13,448,577 10,735,265 Current Service Cost 1,725,698 1,632,643 Interest Cost 4,102,783 816,954 Actuarial losses/(gains) 4,588,838 851,377 Benefits paid (601,070) (687.662) Closing defined benefit obligation 17,364,828 13.48.57 d= Changes in the value of plan assets ; representing reconciliation of the opening and closing balances thereof ' Opening fair value of plan assets i 9346.891 8.145.333 | Expected return on plan assets 928,166 787,150 | ‘Actuarial gains and (losses) (67.710) (252,847), Contributions by employer fo) 4.437.324 1,264,917 | Benefits paid (601,070) (597,662) Closing fair value of plan assets 11,278,021 9,348,891 © The major categories of plan assets as a percentage of total plan assets Qualifying insurance policy 100%, 100% Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages) Discount rato 8.20% 7.61% Expected return on pian assets 9.00% 9.00% Proportion of employees opting for earty retirement - - Annual increase in salary costs . 5.00% 5.00% Notes: i, The estimate of future salary increase considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in employment market. ji, Defined Contribution Plans : YearEnded Year Ended 31-03-2010 31-03-2009 Rupees Rupees Amount recognized as an ex) ense and included in Schedule 16 of Profit and Loss Account 10,290,472 8,585,383GUJARAT TEA PROCESSORS & PACKERS LTD. ‘Schedule ~ 19 Significant Accounting Policies and Notes forming part of Accounts ji, The Defined Benefit obligations which are provided for but not funded are as under: Privilege Leave Benefit YearEnded Year Ended 31-03-2010 31-03-2009 iv. Employee Benefit disclosure Rupees Rupees | 5,321,488 4,400,169 | YearEnded YearEnded Year Ended 31-03-2010 31-03-2009 31-03-2008 Rupees Rupees Rupees Present value of the defined benefit 17,364,826, 13,448,577 10,735,265 obligation Fair value of the plan assets 11,279,021: 9,346,681 8,145,333 | Deficit in the pian 6,085,805 4,101,686 2,589,932 4, As the Company is engaged in only one segment viz. “Tea", and its export turnover is not significant in the context of total turnover, there are no reportable segments as per Accounting Standard - 17 "Segment Reporting”. 5. Disclosures of dues/payments to Micro and Small Enterprises to the extent such enterprises are identified by the Company. (a) wo (i ib) ‘The principal amount remaining unpaid as at March 31 Interest due thereon remaining unpaid on March a The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2008, along with tho amount of the payment made to the suppliers beyond the appointed date during each accounting year. Amount of interest paid Amounts of delayed payments made to the suppliers. Asat As at 31-03-2010 31-03-2009 Rupees Rupees 3,351,831 3,283,016GUJARAT TEA PROCESSORS & PACKERS LTD. ‘Schedule - 19 Significant Accounting Policies and Notes forming part of Accounts © The einount Of interest due and payable for the Period of delay in making payment (which have been paid but beyond the appointed date during tho year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act, 2006. d ‘The amount « Fest accrued and remaining unpaid on March 31 fe) ‘The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the Small Enterprise for the purpose of disallowance as 2 deductible expenditure under section 23 of the Micro, Smali and Medium Enterprises Development Act, 2006 As at Asat 34-03-2010 : 31-03-2009 Rupees Rupees Note: The above information has been determined to the extent such parties have been identified by the Company on the basis of information supplied by the parties, which has been relied upon by the auditors. 6. Managerial Remuneration : Remuneration to Managing Directors / Whole Time Directors Managing Directors Year Ended 34-03-2010 Rupees Solary 10,080,000 Contribution to Provident & Other 1,209,600 Funds Perquisites in cash or in kind 9,185,386 Commission 2,238,264 Total 18,713,230 Year Ended 31-03-2009 Rupees 7,380,000 885,600 3,781,519 12,047,119 Executive Directors Year Ended 31-03-2010 Rupees 44,70,000 536,400 2,286,063 1.492.175, 8,784,638 Year Ended 34-03-2009 Rupees 3,240,000 388,800, 1,648,168 8,274,968 The atove figures do not include contribution to Gratuity Fund as Provision for Gratuity Benefit is based on actuarial valuation done on an averall cx.mpany hasisGUJARAT TEA PROCESSORS & PACKERS LTD. ‘Schedule - 19 Significant Accounting Policies and Notes forming part of Accounts ‘Computation of net profit and directors’ commission under section 309(5) of the Companies Act, 1956 and commission payable to directors Year Ended Particulars 34-03-2010 Rupees Net Profit before tax as per Profit & Loss Account 470,183,822 Add: Loss on redemption of investment Managerial remuneration 27,497,868 Directors’ sitting fees 290.000 498,002,940 Less Profit on sales of fixed assets (Net) 611,109 Net Profit as per Section 349 of the Companies Act, 1958 297,391,831 | Maximum permissible remuneration to Managing Directors and Whole Time Directors under Section 198 of the Companies Act, 1956 @ 10% of the profits computed above. Commission 10 three Managing Directors {@ 0.2% of net profits to each) 2,238,264 pro-rata for the period 1” July 2008 to 31° March 2010 Commission to two Executive Directors (@ 0.2% of net profits to each) 1,492,178 pro-rata for the period 1° July 2009 ta 31” March 2010 Note: Figures for the previous year have not been given as during the previous year no commission was payable to the Directors as a percentage of net profits, 7. Auditors’ Remuneration : YearEnded Year Ended 39-03-2010 31-03-2009 Rupees Rupees Statutory audit fees 496.350 © 330,900 Tax audit fees 110,300 112,360, Other services 33.090 44.944 Roimbursement of expenses 704 1.043 Total 640,444 489,247GUJARAT TEA PROCESSORS & PACKERS LTD. Schedule ~ 19 Significant Accounting Policies and Notes forming part of Accounts Note: Payments made to a firm in which some of the partners of the audit firm are partners are as under: Taxation matters Total 8. Deferred Tax Assets/Liability ‘Mejor components of deferred tax arising on account of timing differences are : Deferred Tax Liability ‘Timing difference on account of depreciation (A) Deferred Tax Assets 55 Disallowances u's. 43-B Provision for Gratuity Others Total Deferred Tax Assets ®) Net Deferred Tax Liability (A) - (B) 9. Licensed and Installed Capacities Licensed Capacity Installed Capacity 12,46,390 12,46,390 Asat 31-03-2010 Rupees 7,916,292 4,767,798 2,021,704 50,184 3,839,686 4,076,606 Asat 39-03-2010 Not Applicable 292,136 292,136 Asat 31-03-2009 Rupees 7,279,363 1,495,617 1,394,163 102,695 2,992,475 4,286,888 Asat 31-03-2009 Not Applicable Not ascertainable Not ascertainableGUJARAT TEA PROCESSORS & PACKERS LTD. Schedule - 19 Significant Accounting Policies and Notes forming part of Accounts 10. Opening Stock, Production, Turnover and Closing Stack of Goods Manufactured Goods: Opening Stock Production Sales Closing Stock Qty Value(Rs.) ty Qty Value aty Value (kg) (kg) (Kg) (Rs.) (Kg) (Rs.) Current Year Packed 181,499 23,981,464 23,247,042 23,175,948" 4,996,786,475 “252,593 | 40,644,467 Tea Blended 218,814 24,993,004 752,284 727,018 110,042,101 244,080 36,052,427 Tea Previous Year Packed 152.063 15,003.048 22,845,798 22,816,362" 3,503,783,206 181,499 23,981,464 Tea Blended 250,107 22,307,067 676,861 708,154 85.0 Tea 935 218,814 24,993,004 * Note: Sales quantities include free issues, Trading Goods Opening Stock Purchases Sales Closing Stock Qty | Value Qty Value’ «Qty. Value(is.) Qty) Value: (Kg) (Rs.} (Kg) (Rs.) (Kg) (Kg) ARs.) Current Year Preimix 993 123.987 51,915 6,498,152 49,235 6,854,847 S611 «427.912: Others : - - 2anre3 - 683,031 : - proven fear Premix 4,385 07,031 76,892 9.472.549 80.284 10,816.467 993 123,987 | Others : = 163,755 : 262,612 : -GUJARAT TEA PROCESSORS & PACKERS LTD. Significant Accounting Policies and Notes forming part of Accounts 411.Raw Materials Consumed during the Year Year Ended 31-03-2010 Qty (Kg) Value (Rs.) Tea 23,829,397 3.208,514,089 © Others: - 405,402 Total 23,829,397 — 3,268,919,491 12.Imported and Indigenous Raw Materials Consumed Year Ended 31-03-2010 Value (Rs.) ‘of the Consumption Imported 27,834,164 0.84% Indigenous 3,241,585,327 99.16% Total 3,268,919,491 100.000% Year Ended 31-03-2009 Qty (Kg) 23,201,419 23,291,419 Value (Rs.) 2,554,705,486 332,207 2,558,037,693 ‘Year Ended 31-03-2009 Value (Rs.) 16,371,523 2,538,666,170 2,555,037,693, % of the Consumption 0.64% 99.36% 100.000% 13. Imported and Indigenous Stores, Spare-parts and Packing Material Consumed Packing Materials Year Ended 31-03-2010 Value (Rs.) % of the Consumption Imported 610,101 049% Indigenous, 124,826,485, 96.51% Total 125,436,586 100% 14. Value of Imports on CIF Basi Raw Material Year Ended 31-03-2009 Value (Rs.) 137.745 128,007,194 128,144,939 Year Ended 31-03-2010 Rupees 15,287,555 ‘ofthe ‘Consumption 0.11% 99.89% 100% Year Ended 34-03-2009 Rupees 11.579.250GUJARAT TEA PROCESSORS & PACKERS LTD. ‘Schedule - 19 ‘Significant Accounting Policies and Notes forming part of Accounts 15. Expenditure in Foreign Gurrency (on Accrual Basis) YearEnded Year Ended 31-03-2010. 31-03-2009 Rupees Rupees Bank Charges 129,721 141,349 Subscription 2,867 4.376 Travelling 1,470,296 1,634,428 Packing Maierial Purchase 853,699 1,018,710, Advertisement Expenditure 299.792 154,990 16. Earnings in Foreign Currency (on Accrual Ba: Year Ended Year Ended 31-03-2010 31-03-2009 Rupees Rupees FOB value of exports 97,897.202 67,709.48 17. Disclosure regarding foreign currency exposures As at 31-03-2010 As at 31-03-2009 Hedged Nil Nil Exposures Unhedged Exposures : Foreign Reporting Foreign Reporting Currency Currency Currency Currency ‘Amount Amount ‘Amount Amount ‘Accounts USD 362,618° 16,368,567 USD 163,753 8,343,210 Recervable Accounts - - USD 37.798 4,901,155 Payable Bank USD 3,710 167,473, usp 772 39.327 BalanceGUJARAT TEA PROCESSORS & PACKERS LTD. ‘Schedute - 19 Significant Accounting Policies and Notes forming part of Accounts 18. Earnings Per Share (EPS) Year Ended 31-03-2010 (A) Net Profit after Tax available to Equity 313,228,667 Shareholders (8) Weighted average number of Equity Shares 17,128,125 outstanding during the year. (C) Basic and Diluted Earnings Per Share of face value of Rs. 10 “18.29 Year Ended 31-03-2009 212,067,753 17,128,125 12.38 19. Disclosure in Respect of Related Parties pursuant to Accounting Standard - 18. Names of related parties and description of relationship : a) Key Management Personal 41 Shri Piyushkumar . Desai Chairman & Managing Director 2 Shri Pankajkumar R. Desai Vice Chairman & Managing Director Shri Raseshkumar R. Desai Managing Director 4 Shri Peragkumar R. Desai Executive Director 5. Shri Paraskumar P. Desai Executive Director b) Relatives of Key Management Personnel : 1 Smt. Pannaben P Desai Wife of Chairman& Managing Director 2 Smt Maitiben D. Zaveri Daughter of Chairmana Managing Director 3 Kum, Jagrutiben P. Desai Daughter of Chairman& Managing Director 4 Smt. Namrataben N. Mehta Daughter of Chairman& Managing Director 5 Smt. Kshmaben T. Merchant Daughter of Chairman& Managing Director 6 Smt, Shraddhaben F. Shah Daughter of Chairman& Managing Director 7 Smt Mamteben B Parikh Daughter of Chairman& Managing DirectorGUJARAT TEA PROCESSORS & PACKERS LTD. ‘Schedule ~ 19 ‘Significant Accounting Policies and Notes forming part of Accounts & Smt Jayalaxmiben R. Desa Mother of Vice Chairman & Managing Director 3 Smt, Pratimaben P. Desai Wife of Vice Chaltman & Managing Director 10 Smt. Sapnaben R, Modi Daughter of Vice Chairman & ‘Managing Director 11. Smt. Krishnaben R. Desai Wife of Managing Director 4 42 Smt Radhaben A. Thakershy Daughter of Managing Director 13 Smt. Malviben Parasbhai Desai Wife of Executive Director 14 Smt Vidishaben Paragbhai Desai. Wife of Executive Director ¢) Enterprises where principa! shareholders have control or significant influence {'Significant Interest Entities") Sr. No. Name 1 | Evergreen Beverages Lid rut Kil-vade Put. Ltd 3 Jayalaxmi Multi-trade Pvt. Utd. 4 krishna-laxm Muti-vade Pit. Lid 5 Pio Tea td 6 The Gujarat Tea Depot Co. d) Others Sr. No. Name Shei Vasant Narayan Desai Multi Purpose Chenitable Trust 2 Ashakiran Trust‘GUJARAT TEA PROCESSORS & PACKERS LTD. ‘Schedule - 19 Significant Accounting Policies and Notes forming part of Accounts Transactions with Related Pai Sr. ' Key 8 Particulars Management c. Personnel Rupees 1. Remuneration 27,497,868 (17,322,087) 2. Sitting Fees 3. Purchase of Raw Materials Pioji Tea Lid 4. Purchase of Packing Materials 5. Sale of Goods ‘The Gujarat Tea Depot Co. 6. Sale of Assets 7. Rendering of Services 8. Lease Rent Income 9. Royalty Expenses: The Gujarat Tea Depot Co, 10. Expenses Reimbursed 11. Donations Shri Vasant Narayan Desai Multi Purpose Charitable Trust 12. Balance outstanding at the yearend Receivables Payables 5.680.419 11,327.50 9) Relative of Key Management Personnel Rupees Significant Interest Entities Rupees 130,006 (78,000) 264,423,576 (241,366,550) 39,100 (232,675) 119,441,652 (92,177,201) 368 0 190,475, (990,716) 189.5727 (81,800) 1.22,818,010 (100,746,262) (15,311) 44,260 (133,310) 12,051,862 (12,870,712) Note: Figures in brackets are in respect of previo 1s yeer Others Rupees 1,600,000 (1,850,000)GUJARAT TEA PROCESSORS & PACKERS LTD. ‘Schedule - 19 Significant Accounting Policies and Notes forming part of Accounts 20. Figures of previous year have been re-groupedire-classified wherever necessary in order to make them comparable with those of the current year ‘Signatures to Schedules 1 to 18 In terms of our report attached For G. C. Chokshi & Co. For and on behalf of the Board of Directors Chartered Accountants vO 6 : | Gaukav J. Shah Chairman & Managing Director Partner Membership No. 35701 PR Place : Ahmedabad her .~e Date: 1146 June , 2010 Vice Chairman & Managing Director TRA ren RDeve. Mani ‘Sion Director Company sorta e Director PO Executive Director Place : Ahmedabad Date: W" Tune 26)8GUJARAT TEA PROCESSORS & PACKERS LIMITED ADDITIONAL INFORMATION AS REQUIRED UNDER PART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956. Balance Sheet Abstract and Company's General Business Profile |. Registration Details Registration No, SOA67BO-8 State Code 04 Balance Sheet Date 31/0372010 Capital Raised during the year __ (Amount in Rs. Thousands) Public tssue : Rights Issue : Bonus Issue - Private Placement - I Position of Mobilisation and : (Amount in Rs. Thousands) Deployment of Funds. Total Liabilities 1,544,369 _ Total Assets 1,544,369 Sources of Funds Paid-up Capital 171,281 Reserves & Surplus 4,187,007 Secured Loans 12,004 Unsecured Loans 2,00,000 Deferred Tax Liability (Net) 4,077 {Amount in Rs. Thousands) ‘Apolication of Funds Net Fixed Assets 281,389 Investments 192 Net Current Assets 12,62,788 Misc.Expenciture - Accumulated Losses : IV__ Performance of Company {Amount in Rs. Thousands) Tumover 4,514,366 Total Expenditure 4,086,950 Profit Before Tax 470.184 Profit After Tax 313,229, Eaming Per Share (Fis) 18.29 Dividend Rate _ _50.00%GUJARAT TEA PROCESSORS & PACKERS LIMITED V Generic Names of Three Principal Products/Services of Company (as per monetary terms) item Code No. {ITC Code) 9 Product Description TEA For and on behaif of the Board of Directors Chairman & Managing Director oa » ce i Vice Chairman & Managing Director Gxa 40 Deva ‘Managing Director s Company Secretary ecutive Director Ms G2 — Executive Director Place : Anmedabad Date: ut!" sume 2010